6 ways truckers can lower their 2018 tax bill

6 ways truckers can lower their 2018 tax bill

September 10, 2025
Lightspeed

Managing a trucking business means keeping a close eye on expenses, compliance, and profitability. But one area many trucking businesses overlook is tax planning.

The trucking industry comes with special deductions and write-offs that can significantly reduce your taxable income. Whether you’re an owner-operator, independent contractor, or small fleet owner, understanding these opportunities can help you keep more money in your pocket.

Here are 10 effective ways truckers can legally lower their tax bill.

1. Deduct Fuel and Maintenance Costs

Fuel is the largest expense for truckers, and it’s also fully deductible including:

Oil changes
Tire replacement
Routine maintenance and repair

Keep detailed receipts or use accounting software integrated with your dispatch software for tracking the expenditures.

2. Claim Per Diem Meal Allowances

Truckers who travel away from home for work can claim per diem rates for meals instead of keeping receipts for every purchase. The IRS and CRA allow a daily allowance on meals while on the road. This often adds up to thousands of dollars in deductions each year.

Tip: Make sure your trips qualify as “away from home” to claim this benefit.

3. Don’t Forget Lodging and Travel Expenses

If your hauls take you overnight, expenses like hotel stays, showers, parking, and tolls are deductible. Even smaller items like laundry while on the road can be written off. Keep proper receipts or use an app that automatically logs these costs.

4. Deduct Insurance Premiums

Insurance is mandatory in trucking, but the good news is that most policies are tax-deductible:

Truck and trailer insurance
Cargo insurance
Liability insurance
Health and occupational accident insurance

By deducting premiums, you not only protect your business but also reduce your taxable income.

5. Write Off Licensing, Permits, and Compliance Fees

Operating in the trucking industry requires numerous fees:

Commercial driver’s license (CDL) renewals
IRP and IFTA fees
DOT compliance costs
State permits and toll passes

All of these business-related expenses are deductible. Working with a consultant can ensure you don’t miss out on claiming these costs.

6. Claim Truck Payments and Depreciation

If you’ve purchased your truck through financing, you may be able to deduct:

Monthly loan interest
Lease payments
Depreciation (for owned trucks and trailers)

Depreciation allows you to spread the cost of equipment over several years, helping you lower your taxable income.

7. Use Retirement Contributions to Reduce Taxes

Contributing to retirement accounts like a 401(k), IRA, or RRSP (for Canadian drivers) lowers your taxable income today while building long-term financial security. Independent truckers often overlook this, but it’s one of the easiest ways to save on taxes while investing in your future.

8. Deduct Office and Administrative Expenses

Even though your truck is your office on wheels, you may still qualify for a home office deduction if you manage business tasks from home.

Additionally, you can deduct:

Office supplies
Accounting and bookkeeping services
Dispatch software and subscriptions
Cell phone bills and internet (business portion)

These small expenses add up quickly and can create meaningful tax savings.

9. Track Medical Exams and Training Costs

Truckers are required to undergo DOT physicals and medical exams—and these expenses are deductible. Likewise, costs for training programs, continuing education, and certifications (such as safety & compliance training or dangerous goods courses) can also reduce your tax bill.

10. Hire a Tax Professional Who Understands Trucking

Finally, the best way to maximize deductions is to work with a tax expert who specializes in the trucking industry. They’ll ensure you’re taking advantage of:

Mileage logs
Expense categorization
Regional tax credits
Proper record-keeping to withstand audits

Given the complexity of trucking taxes, the money saved often outweighs the cost of professional help.

Bonus Tip: Stay Organized All Year

Tax savings don’t just happen at filing season—they come from staying organized year-round. Use software to track expenses, save digital copies of receipts, and categorize deductions monthly. Not only will this lower your tax bill, but it will also make life less stressful when tax deadlines roll around.

Final Thoughts

By taking advantage of these deductions and smart tax strategies, you can significantly reduce your taxable income and improve cash flow for your trucking business.

Remember: tax laws change often, and every trucker’s situation is different. Consult a qualified trucking consultant to maximize your savings.